Here is what I did in order to view panoramas stored locally on my Samsung Galaxy S3
Download Opera Mobile
You need to configure Opera to allow local requests. This is where I spent most of my time downloading and trying other browsers. Opera was the only one I could figure out how to configure to allow local access
Open Opera and use the URL opera:config
Scroll down until you find "User Prefs". Expand User Prefs and place a check mark in the box next to "Allow File SMLHttpRequest"
Scroll all the way down and select Save. This allows Opera to display your panoramas locally.
Next go to Settings and turn off the Status Bar and Navigation bar. I set Zoom to 200%. Not too sure just yet how Zoom affects displaying panos.
Next is to configure Pano2VR. These next series of screen shots are the settings I finally got to work. They are not necessarily the optimum.
I included HTML5 as the only output. No Flash or anything else.
Connect your S3 to your computer using the supplied USB cable. Copy your files over to the phone. On our phone browse to your files using "My Files". Tap on index.htm to view your panorama. Double tap should expand your panorama to full screen.
To display your panorama on your HD TV from your phone, purchase the AllShare Cast Dongle. Works great and the panos look WONDERFUL on a big screen TV!
Remember that the objective is to display your panoramas locally on the S3, not prepare your project to display all the different screen sizes, use Flash or for display on an iDevice.